Staff recommends that the City Council approve the Annexation Agreement with Kenneth Kramer, Jack Kramer, Gerald Kramer, Larry Kramer, and Carolyn Gerondale.

City Council approved the annexation of Lots 66A1 and 67A1, Sunny Cove Fruit Farms at the October 13, 2025, City Council Meeting. The property that was approved to be annexed is located north of Grand Avenue west of 54th Street West.  The developer desires to develop the property as a mixed-use development.  Typically, as a condition of approval of the annexation, the property owner enters into an Annexation Agreement with the City of Billings outlining necessary public improvements.  The Annexation Agreement outlines the off-site improvements necessary for development, including access to the site, construction of water and sanitary sewer, and storm drain.  The Annexation Agreement provides for City-required off-site improvements should the property be annexed and developed without a subdivision plat. The annexation resolution states that the Developer and City must enter into an Annexation Agreement within 45 working days from approval of the resolution.

The Annexation Agreement for this Council action generally includes the following conditions or improvements: requirement for access to the development; requirement for water and sanitary sewer mains and services; requirements for reimbursement for existing water and sewer mains, requirement to be assessed for proportional share of future Grand Avenue improvements, and a requirement for a traffic study.

City Council may:

• Approve the Annexation Agreement with the property owner; or
• Not approve the Annexation Agreement.  If the agreement is not approved, the annexation would be null and void given the agreement is a condition of annexation per the resolution.  

There is one requirement of the Annexation Agreement that would not be required upon site development. Section 5 requires right-of-way dedication along Grand Avenue and Colton Boulevard.  The financial impact of the remainder of the agreement is dependent on policy changes that may occur before development. If development occurs before any changes to the City's development policies, there would be no financial impact. If development occurs after City development policies change, the financial impact would be dependent on the changes.